Accountants for E-commerce
Accountants for UK online sellers on Amazon, Shopify, Etsy and eBay, covering VAT, marketplaces and multi-currency accounting.
How we help
Online selling produces more transactions, more currencies and more VAT complexity than almost any other small business, and generic bookkeeping breaks down quickly. Getting the mechanics right is what makes the numbers trustworthy.
Marketplace VAT is not the same as ordinary VAT
Where a marketplace such as Amazon or eBay is deemed the supplier, it accounts for the VAT rather than you, which means your own return does not simply follow your gross sales figure. Sellers who treat marketplace payouts as turnover routinely misstate both their VAT and their profit. Our guide to Amazon and Shopify VAT for UK sellers sets out who accounts for what.
Selling into the EU: OSS, IOSS and the low-value threshold
Post-Brexit, distance selling into the EU brings in the One Stop Shop and Import One Stop Shop regimes, and a separate treatment for consignments under the low-value threshold. Which applies depends on where your stock sits, who imports it and what it is worth. See OSS, IOSS and the £135 threshold explained.
The reconciliation problem
Stripe, PayPal, Amazon and Shopify all settle net: fees, refunds, chargebacks and reserves are deducted before the money lands. Booking the payout as revenue understates both turnover and costs, and quietly breaks your VAT. Each channel needs reconciling gross, with fees recognised separately. Our guides to reconciling Stripe gross versus net and payment processor accounting cover the mechanics, and bookkeeping for e-commerce covers what most sellers get wrong.
Stock, cost of goods and real margin
Most sellers know their revenue and very few know their true margin by product, because landed cost, shipping, storage, marketplace fees and returns are rarely allocated properly. Getting cost of goods right is what turns a P&L into a decision-making tool, and it is usually where we find that a best-selling line is the least profitable one.
Multi-currency
Selling in several currencies introduces exchange differences that have to be recognised correctly rather than absorbed into a single balancing figure. See multi-currency revenue under FRS 102.
What we do for online sellers
Channel-level bookkeeping reconciled gross, VAT including marketplace and EU regimes, year-end accounts, and margin reporting by product or channel so you know what is actually making money.
Frequently asked questions
Do I charge VAT on Amazon and eBay sales?
Sometimes the marketplace accounts for it instead of you, depending on where your stock is and where the customer is. That changes what goes on your own VAT return, and it is a common source of error.
Do I need to register for VAT in the EU?
Possibly, depending on where your stock is held and your sales levels. The OSS and IOSS schemes are designed to avoid multiple registrations, and we advise on which applies.
Why does my accounting software show the wrong revenue?
Usually because payouts are booked as sales. Stripe, Amazon and Shopify settle net of fees and refunds, so the payout is not your turnover. Each channel needs reconciling gross.
Which platform should I use for e-commerce bookkeeping?
Xero or QuickBooks with a channel integration works for most sellers. The integration matters more than the ledger, because that is what determines whether your data arrives gross.
How do I work out profit by product?
By allocating landed cost, shipping, fees and returns to each line rather than treating them as overhead. It takes setting up once, and it usually changes what people choose to sell.
I sell on several channels. Can you handle all of them?
Yes. We reconcile each channel separately and consolidate, so you get one set of numbers and channel-level margin rather than an undifferentiated total.
Looking for e-commerce specialists?
Book a free consultation and we will tell you honestly whether we can improve on what you have.